Greece to Increase Minimum Wage by 6.4% to 830 Euros
Greece Raises Minimum Wage to Alleviate Cost of Living Pressures
Greece’s conservative government announced a 6.4% increase in the monthly minimum gross wage to 830 euros, marking the fourth raise in five years. The move aims to ease the financial strain on households grappling with a higher cost of living.
Government Decision to Benefit Hundreds of Thousands of Workers
The government stated that the raise, anticipated by many, will positively impact hundreds of thousands of workers across the country. This decision comes in the wake of a recent no-confidence vote that the government successfully navigated.
Continued Efforts to Boost Wages and Economy
Following a 9.4% increase to 780 euros in April 2023, Prime Minister Kyriakos Mitsotakis emphasized that the latest raise is a step towards supporting workers without compromising economic strength and business competitiveness. The government aims to fulfill its pre-election promises by gradually increasing wages.
Positive Economic Outlook for Greece
Despite challenges, Greece’s economy grew by 2% last year, surpassing the euro zone average. The country anticipates a 2.9% growth in 2023, driven by factors like tourism, investments, and domestic demand. Prime Minister Mitsotakis highlighted the government’s commitment to economic recovery post the debt crisis.
Government’s Long-Term Wage Goals
The government plans to raise the monthly minimum wage to 950 euros by 2027 and increase the average wage by over 25% to 1,500 euros in the same period. Additionally, public sector wages and pensions are set to see further increments as part of the overall economic revival strategy.
Upcoming EU Parliamentary Elections
The government’s popularity will face its first official test in the EU parliamentary elections scheduled for June. This electoral event will gauge public sentiment towards the government’s policies and actions since its re-election.
Greece’s Economic Progress and International Standing
Having emerged from international bailouts in 2018, Greece regained investment-grade status last year after 13 years in the “junk” category due to its substantial national debt. These developments signify a positive trajectory for the country’s economic stability and growth.
